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Technology Stocks : Speedfam Options Discussions

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To: Jonathan Edwards who wrote (119)11/19/1997 7:30:00 PM
From: Mr. Sam  Read Replies (1) of 124
 
<<Can someone post a description of how one computes "implied volatility" (or a link to same)?>>

Jonathan, implied volatility differs from historical volatility, which we've discussed here before. To calculate implied volatility, go to the following web site and enter all values except volatility, then let the program calculate the volatility. Do this for several different strike prices and use the average. Use the midpoint of the bid and ask prices for the option price (not the last quote, which might be very old depending on the liquidity of the contract).

intrepid.com
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